Friday, 24 April 2009

UK should be stress tested

One has to wonder whether the UK economy and Bank of England could pass a proper stress test based on actual performance figures (today revealing a 1.9% decline in GDP in Q1) and growth forecasts for the future which are not from "cloud cuckoo land"

Running the numbers properly through a modeling tool should not be seen as just an exercise for Treasury anoraks but should actually be undertaken by Moodys and S&P.

But then again their track record in forecasting has not been much better than Mr. Brown's.

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